Case MFW Doc 325 Filed 10/27/16 Page 1 of 26

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1 Case MFW Doc 325 Filed 10/27/16 Page 1 of 26 UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE f/k/a SynCardia Systems, Inc. Reporting Period: 9/1/2016-9/30/2016 MONTHLY OPERATING REPORT File with Court and submit copy to United States Trustee within 20 days after end of month. Submit copy of report to any official committee appointed in the case. Document Explanation REQUIRED DOCUMENTS Form No. Attached Attached Schedule of Cash Receipts and Disbursements MOR-1 Yes Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1a Yes Schedule of Professional Fees Paid MOR-1b Yes Copies of bank statements Yes Cash disbursements journals Yes Statement of Operations MOR-2 Yes Balance Sheet MOR-3 Yes Status of Postpetition Taxes MOR-4 Yes Copies of IRS Form 6123 or payment receipt Copies of tax returns filed during reporting period Summary of Unpaid Postpetition Debts MOR-4 Yes Listing of aged accounts payable MOR-4 Yes Accounts Receivable Reconciliation and Aging MOR-5 Yes Debtor Questionnaire MOR-5 Yes Affidavit/Supplement Attached Yes Yes I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief. Signature of Debtor Date Signature of Joint Debtor Date /s/ B. Lee Fletcher 10/25/2016 Signature of Authorized Individual* Date B. Lee Fletcher Assistant Restructuring Officer Printed Name of Authorized Individual Title of Authorized Individual *Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

2 Case MFW Doc 325 Filed 10/27/16 Page 2 of 26 Debtor Reporting Period: 9/1/2016-9/30/2016 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS Amounts reported should be per the debtor's books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed. The amounts reported in the "CURRENT MONTH - ACTUAL" column must equal the sum of the four bank account columns. The amounts reported in the "PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM IR-1). Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page. A bank reconciliation must be attached for each account. [See MOR-1 (CON'T)] BANK ACCOUNTS Multi- Checking: Acct 8586 Currency: Acct 7360 Escrow: Acct 3299 Total for Period WellsOne Acct 7306: CASH BEGINNING OF MONTH $1,407,796 $146,346 $2,900 $1,557,043 $0 RECEIPTS CASH $0 COLLECTIONS 572, , ,445 LOANS AND ADVANCES 0 SALE OF ASSETS 0 400,000 TRANSFERS (FROM DIP ACCTS) 0 OTHER COLLECTIONS (SEE TABLE BELOW) 0 DIVIDENDS 0 TOTAL RECEIPTS $572,671 $154,773 $0 $727,445 $400,000 DISBURSEMENTS GROSS PAYROLL AND P/R TAX $288,883 $288,883 BENEFITS 9,750 9,750 SALES, USE, & OTHER TAXES 0 INVENTORY PURCHASES 213, ,644 LAB AND SERVICE EXPENSES 25,894 25,894 CLINICAL STUDIES 22,943 22,943 LICENSES AND REGULATORY 8,919 1,166 10,085 OCCUPANCY 0 SHIPPING 20,337 20,337 MARKETING 0 INFORMATION TECHNOLOGY AND RELATED 0 OTHER OPERATING 69,516 69,516 TRANSFERS (TO DIP ACCTS/ESCROW) 0 PROFESSIONAL FEES 260, ,960 U.S. TRUSTEE QUARTERLY FEES 0 COURT COSTS 0 TOTAL DISBURSEMENTS $920,846 $1,166 $0 $922,012 $0 NET CASH FLOW ($348,174) $153,607 $0 ($194,568) $400,000 TRANSLATION ADJUSTMENTS (EUROS TO DOLLARS) 0 (1,556) 0 (1,556) 0 CASH - END OF MONTH (1) $1,059,622 $298,397 $2,900 $1,360,918 $400,000 * COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE Note (1) - The amounts shown as "End of Month" for the Checking and Multi-Currency accounts are as of the sale closing date (September 19, 2016). The accounts were transferred to the Purchaser at closing under the terms of the Asset Purchase and Sale Agreement and so were no longer property of the estate thereafter. THE FOLLOWING SECTION MUST BE COMPLETED DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN) TOTAL DISBURSEMENTS $922,012 LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS 0 PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts) 0 TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES $922,012 Checking: Multi- Escrow: Total for Period OTHER COLLECTIONS Acct 8586 Currency: Acct 3299 FREIGHT REIMBURSEMENTS $0 REFUND FROM ADP FOR JUNE PAYROLL OVERFUNDING 0 AORTECH - REFUND OF SET-OFF FROM JUNE 0 TOTAL $0

3 Reporting Period: 9/1/2016-9/30/2016 WELLS FARGO: Acct 7360 LICENSES AND REGULATORY Case MFW Doc 325 Filed 10/27/16 Page 3 of 26 DISBURSEMENTS JOURNAL Date Purpose Amount Health Canada 9/13/2016 Licenses and Regulatory $1,166 Total: Acct 7360 $1,166 WELLS FARGO: Acct 8586 GROSS PAYROLL AND P/R TAX ADP 9/14/2016 Gross Payroll and P/R tax $282,115 Farrell, Curt 9/19/2016 Gross Payroll and P/R tax 1,534 Isaacs, Don 9/19/2016 Gross Payroll and P/R tax 918 Nutter, Doug 9/19/2016 Gross Payroll and P/R tax 4,315 BENEFITS Subtotal $288,883 ADP 9/2/2016 Benefits $9,750 CLINICAL STUDIES Subtotal $9,750 IMARC Research Inc. 9/1/2016 Clinical Studies $3,600 Minneapolis Heart Institute 9/8/2016 Clinical Studies 1,500 Seiger, Todd C 9/8/2016 Clinical Studies 1,500 AATS 9/15/2016 Clinical Studies 3,150 Cedars-Sinai Medical Center 9/15/2016 Clinical Studies 7,712 DATATRAK International Inc 9/15/2016 Clinical Studies 3,739 University of Washington 9/15/2016 Clinical Studies 318 Quorum Review, Inc. 9/15/2016 Clinical Studies 1,425 Subtotal $22,943

4 Case MFW Doc 325 Filed 10/27/16 Page 4 of 26 Reporting Period: 9/1/2016-9/30/2016 DISBURSEMENTS JOURNAL Date Purpose Amount INVENTORY PURCHASES Cryolife Inc. 9/1/2016 Inventory Purchases $5,712 McMaster-Carr Supply Co. 9/1/2016 Inventory Purchases 55 Nordson EFD LLC 9/1/2016 Inventory Purchases 27 Praxair Distribution, Inc. 9/1/2016 Inventory Purchases 206 VWR Scientific Prod 9/1/2016 Inventory Purchases 4,272 Univar USA, Inc 9/1/2016 Inventory Purchases 60,046 Univar USA, Inc 9/1/2016 Inventory Purchases 1,940 Patterson Dental Supply Inc 9/1/2016 Inventory Purchases 208 MJS Designs, Inc. 9/7/2016 Inventory Purchases 11,893 Hei-Tek Automation 9/8/2016 Inventory Purchases 7,291 McMaster-Carr Supply Co. 9/8/2016 Inventory Purchases 378 Praxair Distribution, Inc. 9/8/2016 Inventory Purchases 206 Tecomet, Inc. 9/8/2016 Inventory Purchases 29,712 Diversa Products Group LLC 9/8/2016 Inventory Purchases 3,535 Henry Troemner, LLC 9/9/2016 Inventory Purchases 650 Univar USA, Inc 9/9/2016 Inventory Purchases 2,999 Cryolife Inc. 9/12/2016 Inventory Purchases 10,608 Tucson Container Corporation 9/12/2016 Inventory Purchases 360 MJS Designs, Inc. 9/12/2016 Inventory Purchases 1,187 Praxair Distribution, Inc. 9/15/2016 Inventory Purchases 552 Tecomet, Inc. 9/15/2016 Inventory Purchases 28,474 New Era 9/15/2016 Inventory Purchases 43,334 Subtotal $213,644

5 Case MFW Doc 325 Filed 10/27/16 Page 5 of 26 Reporting Period: 9/1/2016-9/30/2016 DISBURSEMENTS JOURNAL Date Purpose Amount LAB AND SERVICE EXPENSES Nelson Laboratories, Inc. 9/1/2016 Lab and Service Expense $100 Sigma-Aldrich Corp. 9/1/2016 Lab and Service Expense 8,740 Sterigenics U.S., LLC 9/1/2016 Lab and Service Expense 2,087 Tektronix Inc 9/1/2016 Lab and Service Expense 4,540 TransChem Environmental 9/1/2016 Lab and Service Expense 110 Technical Building Services 9/1/2016 Lab and Service Expense 4,487 DeFelsko Corporation 9/8/2016 Lab and Service Expense 109 Smart Products Inc 9/8/2016 Lab and Service Expense 564 Truly Nolen of America, Inc 9/8/2016 Lab and Service Expense 534 Nelson Laboratories, Inc. 9/9/2016 Lab and Service Expense 188 Sterigenics U.S., LLC 9/9/2016 Lab and Service Expense 2,087 Nelson Laboratories, Inc. 9/12/2016 Lab and Service Expense 940 General Air Control Inc 9/15/2016 Lab and Service Expense 550 Technical Building Services 9/15/2016 Lab and Service Expense 858 LICENSES AND REGULATORY Subtotal $25,894 Food and Drug Administration 9/1/2016 Licenses and Regulatory $4,574 BSI Management Systems America 9/15/2016 Licenses and Regulatory 4,345 Subtotal $8,919

6 Case MFW Doc 325 Filed 10/27/16 Page 6 of 26 Reporting Period: 9/1/2016-9/30/2016 DISBURSEMENTS JOURNAL Date Purpose Amount SHIPPING Airways Freight Corporation 9/1/2016 Shipping $4,263 FedEX Billing Online 9/1/2016 Shipping 2,090 Airways Freight Corporation 9/8/2016 Shipping 2,722 FedEX Billing Online 9/8/2016 Shipping 6,259 AFS Logistics, LLC 9/15/2016 Shipping 24 Airways Freight Corporation 9/15/2016 Shipping 4,873 Xcel Delivery Services 9/15/2016 Shipping 106 Subtotal $20,337 PROFESSIONAL SERVICES - BANKRUPTCY RELATED Ankura Consulting Group LLC 9/1/2016 Professional services $92,673 Canaccord Genuity Inc. 9/1/2016 Professional services 2,692 Olshan Frome Wolosky, LLP 9/13/2016 Professional services 105,424 Young Conaway Stargatt & 9/15/2016 Professional services 60,170 $260,960 OTHER OPERATING Electronic Printing Products 9/1/2016 Other Operating $325 SarniHaan Capital Partners LLC 9/1/2016 Other Operating 8,333 City of Tucson 9/1/2016 Other Operating 295 Concur 9/1/2016 Other Operating 7,051 ESM Security Systems LLC 9/1/2016 Other Operating 648 GE Capital 9/1/2016 Other Operating 1,081 Sharp Electronics Corporation 9/1/2016 Other Operating 137 Staples Advantage 9/1/2016 Other Operating 90 Time Communications 9/1/2016 Other Operating 92 Big Red Dog Ventures, LLC 9/1/2016 Other Operating 2,071 Inmark LLC 9/1/2016 Other Operating 660 Biopolicy Innovations LLC 9/1/2016 Other Operating 632 LeeShanok Inc 9/1/2016 Other Operating 250 Ascentium Capital, LLC 9/5/2016 Other Operating 1,460 ESM Security Systems LLC 9/8/2016 Other Operating 123 4E Aquisitions, LLC 9/8/2016 Other Operating 30 MSC Industrial Supply 9/8/2016 Other Operating 777 Sharp Electronics Corporation 9/8/2016 Other Operating 1,321 Newark 9/8/2016 Other Operating 66 Unitrends Inc. 9/8/2016 Other Operating 3,060 Concur 9/9/2016 Other Operating 4,868 Wells Fargo 9/12/2016 Other Operating 2,440 Digi-key Corporation /13/2016 Other Operating 1,250

7 Case MFW Doc 325 Filed 10/27/16 Page 7 of 26 Reporting Period: 9/1/2016-9/30/2016 DISBURSEMENTS JOURNAL Date Purpose Amount LeeShanok Inc 9/15/2016 Other Operating 250 Marlin Business Bank 9/15/2016 Other Operating 1,627 BroadData Conferencing 9/15/2016 Other Operating 308 CenturyLink 9/15/2016 Other Operating 137 Culligan of Tucson 9/15/2016 Other Operating 469 Dell Financial Services 9/15/2016 Other Operating 2,569 4E Aquisitions, LLC 9/15/2016 Other Operating 209 Stafford, Barbara G. 9/15/2016 Other Operating 1,190 Tucson Electric Power 9/15/2016 Other Operating 17,535 Concur 9/15/2016 Other Operating 663 JR Associates Inc. 9/15/2016 Other Operating 7,500 Subtotal $69,516 Total: Account 8586 $920,846

8 Case MFW Doc 325 Filed 10/27/16 Page 8 of 26 Debtor Reporting Period: 9/1/2016-9/30/2016 BANK RECONCILIATIONS Continuation Sheet for MOR-1 A bank reconciliation must be included for each bank account. The debtor's bank reconciliation may be substituted for this page. Checking: Multi-Currency: Escrow: Acct 8586 Acct 7360 Acct 3299 Total BALANCE PER BOOKS: 9/30/16 $1,059,622 $298,397 $2,900 $1,360,918 BANK BALANCE: 9/30/16 1,071,100 $298,397 $2,900 $1,372,397 (+) DEPOSITS IN TRANSIT (-) OUTSTANDING CHECKS (ATTACH LIST) (11,478) OTHER ADJUSTED BANK BALANCE * $1,059,622 $298,397 $2,900 $1,360,918 * Adjusted bank balance must equal balance per books $0 $0 $0 $0 DEPOSITS IN TRANSIT Date Amount Date Amount Date Amount Total Total Total CHECKS OUTSTANDING Ck. # Amount Ch. # Amount Ck. # Amount $10, $918 Total $11,478 Total $0 Total $0

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17 Case MFW Doc 325 Filed 10/27/16 Page 17 of 26 Well Fargo Account xxxxx 3904 Date Amount Check Number Description 1,448, /15/2016 ($662.87) CONCUR CASH C0114F8UX003 USD C0114F8UX003 0R /15/2016 ($631.75) CHECK 09/15/2016 ($43,334.00) WT FED#08128 America First Cred /FTR/BNF=New Era Manufacturing SRF# IN TRN# RFB# /15/2016 ($60,170.49) WT FED#07797 WSFS Bank /FTR/BNF=Young Conaway Stargatt & Taylor SRF# IN TRN# RFB# /14/2016 ($205.91) CHECK 09/14/2016 ($1,321.34) CHECK 09/14/2016 ($6,259.41) CHECK 09/14/2016 ($282,115.15) WT FED#07089 JP Morgan Chase /FTR/BNF=ADP TotalSource, Inc. SRF# IN TRN# RFB# /13/2016 ($29.85) CHECK 09/13/2016 ($534.00) CHECK 09/13/2016 ($776.75) CHECK 09/13/2016 ($3,534.90) CHECK 09/13/2016 ($1,249.77) WT FED#08800 Northern State Ban /FTR/BNF=DigiKey SRF# IN TRN# RFB# /13/2016 ($105,423.76) WT FED#05327 TD BANK, NA /FTR/BNF=Olshan Frome Wolosky LLP - IOLA SRF# IN TRN# RFB# /12/2016 ($65.61) CHECK 09/12/2016 ($109.00) CHECK 09/12/2016 ($122.50) CHECK 09/12/2016 ($378.37) CHECK 09/12/2016 ($564.49) CHECK 09/12/2016 ($2,721.54) CHECK 09/12/2016 ($7,291.20) CHECK 09/12/2016 ($29,712.00) CHECK 09/12/2016 ($360.00) WT FED#04531 Compass Bank /FTR/BNF=Tucson Container Corporation SRF# IN TRN# RFB# /12/2016 ($940.00) WT FED#05091 US Bank /FTR/BNF=Nelson Laboratories SRF# IN TRN# RFB# /12/2016 ($1,186.75) WT FED#04513 Western State Bank /FTR/BNF=MJS Designs SRF# IN TRN# RFB# /12/2016 ($10,608.00) WT FED#05112 SUNTRUST BANK /FTR/BNF=CryoLife, Inc. SRF# IN TRN# RFB# /12/2016 ($2,440.34) CLIENT ANALYSIS SRVC CHRG SVC CHGE DP SVC CHGE O /09/2016 ($4,867.60) CONCUR CASH C010YOEPX001 USD C010YOEPX001 0R /09/2016 ($18.35) CHECK 09/09/2016 ($187.50) WT FED#09214 US Bank /FTR/BNF=Nelson Laboratories SRF# IN TRN# RFB# /09/2016 ($650.00) WT FED#09246 JP Morgan Chase, N /FTR/BNF=Troemner LLC SRF# IN TRN# RFB# /09/2016 ($2,086.72) WT FED#09151 JP Morgan Chase Ba /FTR/BNF=Sterigenics US LLC SRF# IN TRN# RFB# /09/2016 ($2,998.80) WT FED#09257 Bank of America /FTR/BNF=Univar USA Inc SRF# IN TRN# RFB# /09/2016 $259, WHOLESALE LOCKBOX DEPOSIT 09/08/2016 ($91.55) CHECK 09/08/2016 ($294.51) CHECK 09/08/2016 ($2,090.10) CHECK 09/08/2016 $130, DEPOSIT 09/07/2016 ($110.00) CHECK 09/07/2016 ($207.95) CHECK 09/07/2016 ($647.52) CHECK 09/07/2016 ($4,486.59) CHECK 09/07/2016 ($4,574.00) CHECK 09/07/2016 ($11,893.13) WT FED#08879 Western State Bank /FTR/BNF=MJS Designs SRF# IN TRN# RFB# /06/2016 ($146.11) AscentiumCapital Property I Syncardia Systems, Inc R /06/2016 ($1,314.23) AscentiumCapital LEASE RENT Syncardia Systems, Inc R

18 Case MFW Doc 325 Filed 10/27/16 Page 18 of 26 Well Fargo Account xxxxx 3904 Date Amount Check Number Description 09/06/2016 ($27.14) CHECK 09/06/2016 ($54.69) CHECK 09/06/2016 ($90.23) CHECK 09/06/2016 ($136.50) CHECK 09/06/2016 ($205.91) CHECK 09/06/2016 ($250.00) CHECK 09/06/2016 ($1,080.84) CHECK 09/06/2016 ($2,070.69) CHECK 09/06/2016 ($3,600.00) CHECK 09/06/2016 ($4,178.73) CHECK 09/06/2016 ($4,263.11) CHECK 09/06/2016 ($4,271.77) CHECK 09/06/2016 ($4,540.44) CHECK 09/06/2016 $129, WHOLESALE LOCKBOX DEPOSIT 09/02/2016 ($1,347.98) CONCUR TECHNOLOG CORP PMT C010RMZ8X005 RMR*ZZ* \TRN*1*C010RMZ8X005\ C010RMZ8X005 0R /02/2016 ($9,749.71) ADP TOTALSOURCE ACH SEP 01 XXXXX A-SynCardia S R /02/2016 ($97.29) CHECK 09/02/2016 ($23,226.50) CHECK 09/02/2016 $52, WHOLESALE LOCKBOX DEPOSIT 09/01/2016 ($7,051.27) CONCUR CASH C010Q4V8X006 USD C010Q4V8X006 0R /01/2016 ($717.95) CHECK 09/01/2016 ($100.00) WT FED#07786 US Bank /FTR/BNF=Nelson Laboratories SRF# IN TRN# RFB# /01/2016 ($325.00) WT FED#07879 BANK OF AMERICA, N /FTR/BNF=Electronic Printing Products SRF# IN TRN# RFB# /01/2016 ($660.32) WT FED#07693 PNC BANK, NATIONAL /FTR/BNF=Inmark LLC SRF# IN TRN# RFB# /01/2016 ($1,940.00) WT FED#00569 Bank of America /FTR/BNF=Univar USA Inc SRF# IN TRN# RFB# /01/2016 ($2,086.72) WT FED#01104 JP Morgan Chase Ba /FTR/BNF=Sterigenics US LLC SRF# IN TRN# RFB# /01/2016 ($2,692.16) WT FED#07772 BANK OF NEW YORK M /FTR/BNF=Canaccord Genuity SRF# IN TRN# RFB# /01/2016 ($5,712.00) WT FED#07614 SUNTRUST BANK /FTR/BNF=CryoLife, Inc. SRF# IN TRN# RFB# /01/2016 ($8,333.33) WT FED#07784 CITIBANK N.A. NEW /FTR/BNF=SarniHaan Capital Partners LLC SRF# IN TRN# RFB# /01/2016 ($8,740.40) WT FED#07911 U.S. BANK /FTR/BNF=Sigma-Aldrich Inc SRF# IN TRN# RFB# /01/2016 ($60,046.00) WT FED#00629 Bank of America /FTR/BNF=Univar USA Inc SRF# IN TRN# RFB# /01/2016 ($92,673.40) WT FED#07759 JP Morgan Chase, N /FTR/BNF=Ankura Consulting Group, LLC SRF# IN TRN# RFB# ,171,117.23

19 Case MFW Doc 325 Filed 10/27/16 Page 19 of 26 Debtor Reporting Period: 9/1/2016-9/30/2016 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID This schedule is to include all retained professional payments from case inception to current month. Payee Period Covered Amount Approved Check Amount Paid Year-To-Date Payor Number Date Fees Expenses Fees Expenses Ankura Consulting (1) 7/1/16-7/31/16 $97,500 SynCardia Wire 6/30/2016 $87,500 $10,000 8/1/16-8/31/16 $87,500 Wire 8/4/2016 $87,500 9/1/16-9/30/16 $92,673 Wire 9/1/2016 $87,500 $5,173 $262,500 $15,173 Canaccord Genuity Inc. (1) 7/1/16-7/31/16 $35,000 SynCardia Wire 6/29/2016 $35,000 8/1/16-8/31/16 $63,890 Wire 8/18/2016 $63,890 9/1/16-9/30/16 $2,692 Wire 9/1/2016 $2,692 $98,890 $2,692 Olshan Frome Wolosky, LLP 7/1/16-7/31/16 $105,424 SynCardia Wire 9/13/2016 $103,796 $1,628 $103,796 $1,628 Young Conaway 7/1/16-7/31/16 $60,170 SynCardia Wire 9/15/2016 $57,110 $3,060 $57,110 $3,060 Total Paid Through 9/30/16 $544,850 $522,296 $22,554 $522,296 $22,554 (1) Prepayments made in June for Ankura and Canaccord were applied against July invoices

20 Case MFW Doc 325 Filed 10/27/16 Page 20 of 26 Debtor Reporting Period: 9/1/2016-9/30/2016 STATEMENT OF OPERATIONS (Income Statement) The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid. Cumulative REVENUES Current Period Filing to Date Gross Revenues $847,318 $2,060,215 Less: Sales Discounts, Returns and Allowances 0 0 Net Revenue $847,318 $2,060,215 COST OF GOODS SOLD Beginning Inventory $7,743,027 $7,736,107 Add: Purchases 132, ,172 Add: Cost of Labor 55, ,722 Add: Other Costs (attach schedule) 162, ,345 Less: Ending Inventory 7,675,347 7,675,347 Cost of Goods Sold 417,963 1,303,999 Gross Profit $429,356 $756,216 OPERATING EXPENSES Advertising $0 $0 Auto and Truck Expense 0 0 Bad Debts 0 0 Clinical Fees/site administration 16,809 52,171 Contributions 0 0 Customer Refunds 0 0 Employee Benefits Programs 65, ,599 Equipment Rental 606 3,254 Expenses allocated to COGS (93,457) (350,642) Insider Compensation* 8,333 24,999 Insurance 36, ,073 IT Services 13,109 90,001 Merchant Processing and Bank Fees 0 0 Office Expense 6,899 24,672 Pension & Profit-Sharing Plans 0 0 Consulting Services (not related to reorganization) 49, ,071 Regulatory Agency Expense 1,646 20,140 Rent and Lease Expense 27, ,418 Repairs and Maintenance 1,547 16,628 Research & Development 0 6,342 Salaries / Commissions / Fees (including P/R Taxes) 203,341 1,062,977 Supplies 10,498 32,962 Taxes - Other 0 0 Taxes - Payroll (included above in Salaries) 0 0 Taxes - Real Estate 10,950 32,850 Travel and Entertainment 28,427 67,335 Utilities 19,163 47,317 Validations and Calibrations 5,447 20,940 Warehouse Services 0 0 Total Operating Expenses Before Depreciation 411,945 1,780,108 Depreciation/Depletion/Amortization 17,085 50,989 Net Profit (Loss) Before Other Income & Expenses $326 ($1,074,881) OTHER INCOME AND EXPENSES Other Income (attach schedule) $0 $0 Gain/Loss from Foreign Currency $945 $31,397 Other Expense $3,155 $5,755 Net Profit (Loss) Before Reorganization Items ($3,775) ($1,112,033) REORGANIZATION ITEMS Professional Fees $444,297 $1,275,189 U. S. Trustee Quarterly Fees 6,066 10,400 Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet) 0 0 Gain (Loss) from Sale of Fixtures/ Equipment (7,415,495) (7,415,495) Other Reorganization Expenses (attach schedule) 241, ,000 Total Reorganization Expenses 8,106,858 8,942,084 Income Taxes 0 0 Net Profit (Loss) ($8,110,632) ($10,054,117) *"Insider" is defined in 11 U.S.C. Section 101(31).

21 Case MFW Doc 325 Filed 10/27/16 Page 21 of 26 Debtor Reporting Period: 9/1/2016-9/30/2016 STATEMENT OF OPERATIONS - continuation sheet Cumulative BREAKDOWN OF "OTHER" CATEGORY Current Period Filing to Date Other Costs Allocations based on % of operations $80,051 $325,236 COGS Depreciation 73, ,690 Inventory supplies 3,405 5,733 Sterilization 0 9,270 Decrease in patient driver liability 6,891 (12,697) Inventory adjustments (131) (3,338) Price variances (487) 452 Other Operational Expenses $162,748 $543,345 Other Income Other Expenses Exhibition Expense $3,155 $4,514 CT Corp Fee 608 Subscriptions 632 Other Reorganization Expenses $3,155 $5,755 Reorganization Items - Interest Earned on Accumulated Cash from Chapter 11: Interest earned on cash accumulated during the chapter 11 case, which would not have been earned but for the bankruptcy proceeding, should be reported as a reorganization item.

22 Debtor Reporting Period: 9/1/2016-9/30/2016 BALANCE SHEET The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations. ASSETS BOOK VALUE AT END OF CURRENT REPORTING MONTH BOOK VALUE ON PETITION DATE CURRENT ASSETS Unrestricted Cash and Equivalents $400,000 $524,653 Restricted Cash and Cash Equivalents (see continuation sheet) 2,900 Accounts Receivable (Net) 4,785,987 Notes Receivable Inventories 7,736,107 Prepaid Expenses 711,671 1,016,573 Professional Retainers 212, ,750 Other Current Assets (attach schedule) 18,989 TOTAL CURRENT ASSETS $1,326,938 $14,299,058 PROPERTY AND EQUIPMENT Real Property and Improvements Machinery and Equipment Furniture, Fixtures and Office Equipment Leasehold Improvements Vehicles Less Accumulated Depreciation TOTAL PROPERTY & EQUIPMENT (NET) $5,308,796 OTHER ASSETS Loans to Insiders* Debt Issuance Costs 0 TOTAL OTHER ASSETS $0 $0 TOTAL ASSETS $1,326,938 $19,607,854 BOOK VALUE AT END OF CURRENT REPORTING MONTH BOOK VALUE ON PETITION DATE LIABILITIES AND OWNER EQUITY LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition) Accounts Payable $0 $0 Taxes Payable (refer to FORM MOR-4) Wages Payable Accrued Payroll/Benefits Accrued Expenses Secured Debt / Adequate Protection Payments Borrowed Hearts Deferred Revenue Professional Fees 701,671 U.S. Trustee Fees 10,000 Amounts Due to Insiders* Other Postpetition Liabilities (attach schedule) TOTAL POSTPETITION LIABILITIES $711,671 $0 LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition) Secured Debt - 1st and 2nd Lien Debt $41,064,608 $41,064,608 Secured Debt - Capital Leases 314,596 Secured Debt - Other 127,621 Unsecured Debt - Deferred Revenue 7,706,095 Unsecured Debt - Accrued PTO 133, ,156 Unsecured Debt - Deferred Service Costs 225,191 Unsecured Debt - Leases 27,906 Unsecured Debt - Other 13,264,052 13,571,416 Total Unsecured Liabilities Subject to Compromise 13,397,510 21,893,764 TOTAL PRE-PETITION LIABILITIES $54,462,118 $63,400,588 TOTAL LIABILITIES $55,173,789 $63,400,588 OWNER EQUITY Capital Stock $197,162 $197,162 Additional Paid-In Capital 88,472,482 88,472,482 Preferred Stock 17,417,005 17,417,005 Owner's Equity Account Retained Earnings - Pre-Petition (149,879,383) (149,879,383) Retained Earnings - Postpetition (10,054,117) Adjustments to Owner Equity (attach schedule) Postpetition Contributions (Distributions) (Draws) (attach schedule) NET OWNER EQUITY ($53,846,851) ($43,792,734) TOTAL LIABILITIES AND OWNERS' EQUITY $1,326,938 $19,607,854 *"Insider" is defined in 11 U.S.C. Section 101(31). Case MFW Doc 325 Filed 10/27/16 Page 22 of 26

23 Case MFW Doc 325 Filed 10/27/16 Page 23 of 26 In re Debtor Reporting Period: 9/1/2016-9/30/2016 BALANCE SHEET - continuation sheet Other Current Assets BOOK VALUE AT END OF BOOK VALUE ON ASSETS CURRENT REPORTING MONTH PETITION DATE Other Current Assets Deposits Cherrylake Partners LLC 1974 Bldg Suite 100 $2,683 Cherrylake Partners LLC 1974 Bldg Suite 110 2,764 Cherrylake Partners LLC 1978 Bldg 2,872 Cherrylake Partners LLC 1896 Bldg 3,469 Cherrylake Partners LLC 1992 Bldg 6,166 EACTS 2016 Hotel deposit 1,035 Subtotal $18,989 Other Assets Other Postpetition Liabilities BOOK VALUE AT END OF BOOK VALUE ON LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE Adjustments to Owner Equity Postpetition Contributions (Distributions) (Draws) Restricted Cash is cash that is restricted for a specific use and not available to fund operations. Typically, restricted cash is segregated into a separate account, such as an escrow account.

24 Case MFW Doc 325 Filed 10/27/16 Page 24 of 26 Debtor Reporting Period: 9/1/2016-9/30/2016 STATUS OF POSTPETITION TAXES The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes. Attach photocopies of any tax returns filed during the reporting period. Beginning Amount Ending Tax Withheld Amount Date Check No. Tax Liability or Accrued Paid Paid or EFT Liability Federal 8/1/2016 8/31/2016 Withholding (1) $0 $0 $0 $0 FICA-Employee (1) FICA-Employer (1) Unemployment (1) Income Other Total Federal Taxes $0 $0 $0 $0 State and Local Withholding $0 $0 $0 $0 Sales (1) Excise Unemployment Real Property 21,900 10,950 32,850 Assumed by Purchaser 0 Personal Property Commercial Rent Tax Total State and Local Total Taxes $21,900 $10,950 $32,850 $0 Note 1: All payroll taxes are paid currently by the Debtor's payroll administrator (ADP) SUMMARY OF UNPAID POSTPETITION DEBTS Number of Days Past Due Current Over 90 Total Accounts Payable $0 Wages Payable 0 Taxes Payable / Sales and Commercial Rent 0 Rent/Leases-Building 0 Rent/Leases-Equipment 0 Secured Debt/Adequate Protection Payments 0 Professional Fees 701, ,671 U.S. Trustee Fees 10,000 10,000 Amounts Due to Insiders* 0 Other: 0 0 Total Postpetition Debts $711,671 $0 $0 $0 $0 $711,671 Explain how and when the Debtor intends to pay any past-due postpetition debts

25 Case MFW Doc 325 Filed 10/27/16 Page 25 of 26 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re: TAH Windown, Inc., 1 Chapter 11 Case No (MFW) Debtor. DECLARATION REGARDING THE STATUS OF THE DEBTOR S POST-PETITION TAXES OF AS OF SEPTEMBER 30, 2016 I, B. Lee Fletcher, hereby declare under penalty of perjury under 28 U.S.C. 1746: 1. I am the Assistant Restructuring Officer of SynCardia Systems, Inc. (the Debtor ). In such capacity, I have become familiar with the Debtor s day-to-day operations, business, affairs and books and records. 2. All statements in this Declaration are based on my personal knowledge, my review of the relevant documents, and my discussions with other employees of the Debtor. If I were called upon to testify, I could and would testify to each of the facts set forth herein. I am authorized to submit this Declaration on behalf of the Debtor. 3. To the best of my knowledge, from the Petition Date through September 30, 2016 the Debtor has filed all necessary federal, state and local tax returns and made all required undisputed postpetition tax payments in connection therewith on a timely basis or have promptly remediated any late filings or payments that may have occurred due to unintentional oversights, other than its 2015 federal and state income tax returns. The extended period to file these returns ran in September. The Debtor is examining its options to complete the returns. 4. Pursuant to 28 U.S.C. 1746, I declare under penalty of perjury that the foregoing is true and correct. Dated: October 25, 2016 Respectfully submitted, /s/ B. Lee Fletcher B. Lee Fletcher Assistant Restructuring Officer 1 The Debtor in this case (with the last four digits of its taxpayer ID no. in parenthesis): TAH Windown, Inc., f/k/a SynCardia Systems, Inc. (1044). The Debtor s corporate address is: 1992 E. Silverlake Road, Tucson, Arizona :

26 Case MFW Doc 325 Filed 10/27/16 Page 26 of 26 Debtor Reporting Period: 9/1/2016-9/30/2016 ACCOUNTS RECEIVABLE RECONCILIATION AND AGING Accounts Receivable Reconciliation Amount Total Accounts Receivable at the beginning of the reporting period $3,677,113 (1) + Amounts billed during the period 1,367,356 - Amounts collected during the period 727,445 -Transferred to Purchaser 4,317,024 Total Accounts Receivable at the end of the reporting period $0 Accounts Receivable Aging Amount 0-30 days old $ days old days old 91+ days old Total Accounts Receivable $0 Amount considered uncollectible (Bad Debt) 0 Accounts Receivable (Net) $0 Note 1: Includes approximately $2.6 million due from the non-debtor affiliate that eliminates in consolidation. DEBTOR QUESTIONNAIRE Must be completed each month Yes No 1. Have any assets been sold or transferred outside the normal course of business NO this reporting period? If yes, provide an explanation below. 2. Have any funds been disbursed from any account other than a debtor in possession NO account this reporting period? If yes, provide an explanation below. 3. Have all postpetition tax returns been timely filed? If no, provide an explanation YES below. 4. Are workers compensation, general liability and other necessary insurance YES coverages in effect? If no, provide an explanation below. 5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened Yes provide the required documentation pursuant to the Delaware Local Rule * * The Debtor's bank accounts were transferred to the Purchaser at closing under the terms of the Asset Purchase Agreement. The Debtor opened a new account with Wells Fargo to receive the Cash Consideration from the sale and serve as the operating account for TAH Windown.